ECO101H1 Chapter Notes - Chapter 5: Perfect Competition, List Of From Eroica With Love Characters, Social Cost
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ECO101H1 Full Course Notes
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5 surplus & efficiency many ways to allocate scarce resources. Wheat: pretty darn close to competitive market, some subsidies. Beer: mostly competitive market, some restrictions, high taxes. Popular marathons: nyc: lottery (mostly); chicago: rst come rst served; boston: preference to faster runners. Kidneys (canada: prioritized (medical need, likelihood of success), wait list. Former soviet union: command and control assessing the resulting allocation is a particular allocation of a scarce resource. Show that under certain circumstances, with this as our measure of goodness, outcome of perfectly competitive market cannot be improved upon (ex. Discuss why economists are careful talking about fairness. Assess e ciency implications of market interventions evaluating a single transaction . Agent b gets an item, agent s gives up (perhaps has to produce) the item. Surplus generated by transaction = marginal societal bene t - marginal societal cost assumption big.
